🚨 XRP Exodus: Coinbase Cold Wallets Drained in Major Reallocation Move

Coinbase's XRP reserves are vanishing faster than a trader's patience during a bear market. Cold wallets once packed with the Ripple-linked asset now show alarming outflows—just as the SEC vs. Ripple saga enters another courtroom chapter.

Where’s the XRP going?

Whales or institutions? Either way, someone’s betting big on a post-legal clarity pump. Meanwhile, retail bags get heavier—because nothing says ‘democratized finance’ like watching the big players move first.

Timing is… suspicious

The drain coincides with fresh rumors of an XRP ETF filing. Classic Wall Street play: shake the tree, scoop the assets, then let the plebs chase the news cycle.

Bottom line: When exchanges bleed crypto, it’s either panic or strategy. With Coinbase’s track record? Place your bets—but maybe keep some dry powder for the inevitable ‘liquidity crisis’ tweetstorm.

TLDR

• Coinbase has reduced its XRP holdings by 40 percent within a few weeks.
• Only 35 out of 52 Coinbase cold wallets holding XRP remain funded.
• Large amounts of XRP have been moved from cold wallets to hot wallets.
• One transaction involved the transfer of 16.8 million XRP to a Coinbase hot wallet.
• XRP funds may be moving to subwallets linked to Bitstamp and BitGo.

Coinbase has reduced its XRP holdings by 40%, shifting millions in assets from cold storage over recent weeks. XRPWallets data confirmed that 35 Coinbase addresses remain active out of the original 52 previously holding XRP. The reduction signals a major operational change rather than a sign of market retreat.

Large-scale XRP transfers have been tracked, showing a systematic movement of funds between Coinbase-controlled wallets. Many of these transactions involve known cold wallets consolidating into fewer addresses. Observers note that these changes are occurring without major inflows or outflows to external exchanges.

Previously, Coinbase maintained an estimated 970 million XRP across these wallets, which have now dropped to substantially lower levels. The change aligns with rising XRP activity and increased institutional involvement in Ripple-related services. However, Coinbase remains unsure of the exact reason for the consolidation.

Cold Wallet Dispersal Shows Coordinated Movement

In June, ten Coinbase wallets each held 26.8 million XRP, while 42 held 16.8 million each. As of July 29, most have either been drained or reduced to negligible balances. One confirmed transaction involved 16.8 million XRP moving from “Cold Wallet 400” to a Coinbase hot wallet.

These movements suggest a centralized redistribution rather than mass withdrawals or client outflows. Analysts LINK this restructuring to routine exchange management or upcoming XRP utility demands. Despite the sharp drop, Coinbase’s infrastructure remains actively engaged in XRP custody.

Coinbase continues to operate multiple XRP wallets though with lower balances across the board. Fewer funded addresses now hold XRP, but transfers continue among associated subwallets. The change marks a potential shift in custodial strategy or technical positioning.

Potential Links to Ripple and Custodial Platforms

Some XRP has moved to wallets tied to Bitstamp and BitGo, both known to interact with Ripple’s On-Demand Liquidity network. These platforms often receive transfers from institutional partners for liquidity-related operations. The changes may reflect preparation for increased volume or evolving liquidity needs.

Coinbase is repositioning its reserves without exiting XRP management entirely. Though not officially confirmed, ongoing transactions suggest ties to Ripple-integrated services remain intact. Coinbase may be restructuring for better efficiency or for future infrastructure integration.

Ripple’s partnerships with custodians are growing, and Coinbase might be adapting accordingly. Subwallets showing smaller XRP deposits hint at redistribution rather than downsizing. Coinbase maintains presence in the XRP space but with a notably altered storage footprint.